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Elon Musk's Email: Demand Is Strong, Deliveries Need To Catch Up

MARK KANE From INSIDEEVs| May 31 , 2019

Elon Musk Email, Tesla car demand

The new leaked email from Tesla CEO Elon Musk to employees brings more details about the current quarter, which could become a record one for the company.

After about two-thirds of the quarter behind us, Musk wrote that  "our demand is strong", but to have a successful quarter, deliveries need to catch up in terms of both pace and cost.

Elon Musk announced that to make sure of the outcome, he will personally be in touch with America, Asia, and Europe delivery teams to solve the bottlenecks and make the process cost-efficient.

To: Everybody

While our demand is strong, we have a lot of vehicle deliveries to catch up to in order to have a successful quarter.

Starting tomorrow, I will be holding skip-level calls with America, Asia, and Europe delivery teams every 2 days to understand what’s needed to accelerate the rate of deliveries.

We also need to address the total cost of getting a car from our factory to the customer. Last quarter, there were many expedites (sic) fees and routing inefficiencies that led to higher than expected delivery costs. This makes it much harder for Tesla ro (sic) break even.

Per my earlier email, if we execute well, Q2 will be an all-time record for Tesla vehicle deliveries and an awesome victory!!

Super excited to make this happen with you.

Elon

The email, provided by Teslarati, has a very positive overtone as there is nothing more important than strong demand and the chance to set a new record of more than 90,000 quarterly deliveries.

The chances that Tesla can make deliveries smoother and more cost-efficient in relation to Q1 are huge because we all know how difficult it was to start the Model 3 delivery rush in Europe and China simultaneously. When teams gain experience and develop better procedures, everything should go more smoothly.

Higher volume and higher margins should help Tesla to hopefully again note a positive financial result.

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